Debt Consolidation Tricks

Debt consolidation can be nothing more than a trick to get you do something you will truly regret in the future.

One of the myths about debt consolidation loans is that they are easy to get. Nothing could be further from the truth. Debt consolidation loans are often considered “Hard Money Loans” in that they are for people who would not else qualify for a loan. Second, the interest rate on these loans can be as high as 20% and go up from there, depending upon your credit score.

The second trick you need to be aware of are companies that state that all you need to do is transfer you balance from one account to another. For example, credit cards that are offering zero percent “teaser rates” for a short period of time, such as 6 months to 1 year. What they do not tell you is that if you miss one payment, your interest tare could climb to 25% or more instantly. Not only that, you have not solved the problem, which is the debt itself.

Thirdly, a debt consolidation company may tell you that they will take care of everything for you. When is the last time someone promise you that? As the old saying goes, if it sound too good to be true, it probably is.

People who are in desperate times often do desperate things. That is why at Nationwide Debt Reduction, we take the time to explain to you the pitfalls and traps to look for. In addition, our professional consultants are trained to educate you first on all the different options that are available to you. We know that every person situation is different. There is no such thing as fitting everyone into the same program.

For more information about this, please call us toll free today. There is no cost to do so, and you will glad you did!